Sweeping property & sales tax proposal dead for 2022 session

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There won’t be a vote on a proposal to hike the state sales tax and remove nearly all property taxes for homeowners in Idaho after all.

On Thursday, House Majority Leader Mike Moyle, R-Star, told the Lewiston Tribune he and Sen. Jim Rice, R-Caldwell, want to take more time to educate the public on the proposal instead of risking it fail at the end of the legislative session. He hopes to bring it back for consideration in 2023.

“This is a good bill,” he told the Tribune. “Once people have a chance to sit down and go through the numbers, they recognize that.”

This bill would have hiked the state sales tax to 7.85% to replace the lost revenue in local government budgets from cutting all property taxes except for voter-approved bonds and levies.

What about the other property tax relief legislation?

Other bills put forward early in the session are still in limbo.

The House and the Senate each passed their own, slightly different versions of a bill to add back some Idahoans to the property tax reduction program, known as the circuit breaker, after they were set to be removed this year. Neither bill has had a hearing in the other chamber.

Sen. Regina Bayer, R-Meridian, told voters in a newsletter that both circuit breaker bills have been held in committees controlled by Rep. Steven Harris, R-Meridian, and Rice.

“Both committee chairmen have commented that they are waiting to see if their preferred property tax relief bill advances,” she wrote at the end of February.

The fate of Moyle’s bill proposing to use increases to sales tax revenue to cut property taxes is also unknown. It passed the House, but has not had a hearing in Rice’s Senate Local Government and Taxation Committee yet.

Margaret Carmel - BoiseDev Sr. Reporter
Margaret Carmel - BoiseDev Sr. Reporter
Margaret Carmel is a BoiseDev reporter focused on the City of Boise, housing, homelessness and growth. Contact her at [email protected] or by phone at (757)705-8066.

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